Makita (6586) Q4 2025 earnings summary

Executive summary

• Revenue for FYE2025 rose 1.6% to ¥753.1 billion, driven by yen depreciation, cost reductions, and strong OPE sales.

• Operating profit surged 61.8% to ¥107.0 billion, with margin at 14.2%; profit attributable to owners rose 81.6% to ¥79.3 billion.

• Growth in Europe and Japan offset declines in North America and Asia; Middle East and Africa saw strong demand.

• OPE sales were strong, offsetting sluggish power tool sales due to weak construction markets.

• Focus on expanding cordless product lineup and cost optimization initiatives.

Financial highlights

• Gross profit margin improved to 36.0% from 30.2%; cost of sales ratio improved to 64.0% from 69.8%.

• EPS increased to ¥294.90 from ¥162.13 year-over-year.

• ROE improved to 8.8%, exceeding estimated cost of equity (6–8%).

• Cash and cash equivalents at year-end increased to ¥253.3 billion.

• Dividend per share for FYE2025 was ¥110, including a ¥6 commemorative dividend.

Outlook and guidance

• FYE2026 revenue forecasted at ¥700.0 billion, down 7.1% year-over-year; operating profit expected to decline 30.9% to ¥74.0 billion.

• EPS projected to decrease to ¥200.71; profit attributable to owners to fall 31.9% to ¥54.0 billion.

• U.S. sales projected to drop due to tariffs on China; labor costs anticipated to rise.

• Capital expenditures planned to rise to ¥28.0 billion, with R&D costs at ¥16.5 billion.

• Exchange rate assumptions: 140 JPY/USD, 160 JPY/EUR, 19.5 JPY/RMB.